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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

Internal auditor Meera is documenting the receivables process at Kaveri Foods Ltd. She wants a record that is quick to prepare and easy to update, and she will rely on it only to confirm that listed procedures were performed, not to describe how the system operates. Which documentation approach fits this need?

A checklist of procedures with completion marks fits best. It is quick to prepare and update and confirms that listed steps were performed. It does not explain how the system works, which is what a narrative or flowchart would do.

  1. AA narrative memorandum running to several pages
  2. BA checklist of procedures with completion marksCorrect
  3. CA full set of ledger confirmations
  4. DA cash flow statement

Explanation

A checklist lists specific procedures or items and is ticked off as each is completed, so it is quick to prepare and confirms performance. A narrative is slower and describes the system in detail. Confirmations and cash flow statements are not system documentation tools.

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